Mayor Thomas M. Menino, BHA Administrator William McGonagle and Beacon Communities Development President Pam Goodman announced today the groundbreaking for Phase Two of the redevelopment of the Old Colony public housing development in South Boston.

“Redeveloping Old Colony creates jobs and green affordable housing,” Mayor Menino said. “In these tough economic times, a project like this is a boon to our residents and those in the building trades. I want to thank Congressman Lynch and the Massachusetts Congressional Delegation for their support of this project."

Old Colony Phase Two includes the demolition of the remaining 223 units along Old Colony Avenue up to Dorchester Street and over to Reverend Burke Street. Following demolition, 169 new affordable rental units in townhouse-style buildings and four-story elevator buildings will be built. The new apartments will be innovative, high-efficiency affordable housing for current and future residents of the site.

“HUD is proud to be a partner in building an Old Colony community that delivers quality homes in a neighborhood with good schools and access to transit. Our investments are helping residents connect to services designed to improve their lives," said Barbara Fields, HUD New England Regional Administrator.

The public/private partnership to redevelop the site includes funding from a combination of a $22 million federal HOPE VI grant from the US Department of Housing and Urban Development, $1 million investment from the City of Boston Neighborhood Housing Trust, $3.5 million in State bond funds and an allocation of low income housing tax credits from the Commonwealth, construction financing provided by MassHousing and state and federal Low-Income Housing Tax Credit equity provided by U.S. Bank through their community investment subsidiary.

“We’re pleased to be entering phase two of this redevelopment effort,” said BHA Administrator Bill McGonagle. “We’ve been working with residents for many years to improve this site and to have one phase completed and the next beginning is a great achievement.”

“I’m excited today to celebrate the groundbreaking of Phase Two of this critical project in South Boston,” said Aaron Gornstein, Undersecretary for the Department of Housing and Community Development. “Investing in affordable housing creates jobs, grows local businesses and brings our communities together. I look forward to the opening of these units and our continued partnership with the City of Boston and the Boston Housing Authority.”

Beacon Communities is the developer of Phase Two. Construction began in October 2012 and will be completed in May 2014. Like Phase One, this project is expected to be the most advanced “green” residential affordable housing project constructed in the Commonwealth. The project will meet the following criteria: Enterprise Green Community Criteria; LEED (Leadership in Energy and Environmental Design) Building and Neighborhood Certification; and Energy Star Homes certification. All the newly constructed buildings will also be smoke-free in keeping with the BHA’s recently adopted non-smoking policy. The HOPE VI award also allows BHA to provide a robust community and supportive services program with intensive case management services that focuses on education from early childhood through adulthood.

“Beacon is proud to be working on this exciting and important development, and we want to thank the city, state, MassHousing, U.S. Bank and all of our team for making this happen,” said Pam Goodman, President of Beacon Communities Development.

Phase One of Old Colony was completed in March 2012. Old Colony Phase One included the demolition of 164 of the existing distressed units along Columbia Road and Old Colony Avenue and the construction of 116 new affordable rental units in an attractive elevator building and four townhouse-style buildings. Two new streets better open the development to the surrounding neighborhood. Also included in Phase One was a new 10,000 square foot Learning Center and outdoor recreation space. This Learning Center houses a computer room, Head Start program, and community service programs. The Learning Center was named after former Boston City Council President Joseph M. Tierney, who passed away in 2009. Mr. Tierney grew up in the Old Colony development.